all of the following are assumptions of cost - volume - profit analysis except\na. the sales mix is…

all of the following are assumptions of cost - volume - profit analysis except\na. the sales mix is constant.\nb. within the relevant range of operating activity, the efficiency of operations can change.\nc. costs can be divided into fixed and variable components.\nd. there is no change in inventory quantities during the period.

all of the following are assumptions of cost - volume - profit analysis except\na. the sales mix is constant.\nb. within the relevant range of operating activity, the efficiency of operations can change.\nc. costs can be divided into fixed and variable components.\nd. there is no change in inventory quantities during the period.

Answer

Brief Explanations:

Cost - volume - profit (CVP) analysis assumes constant sales mix, cost division into fixed and variable components, and no change in inventory quantities. It also assumes that within the relevant range, the efficiency of operations remains constant. Option b violates this assumption.

Answer:

B. within the relevant range of operating activity, the efficiency of operations can change.